Fed: Rudd won't say whether economy slowing too quickly=2

AAP General News (Australia)
08-01-2008
Fed: Rudd won't say whether economy slowing too quickly=2

Mr Rudd admitted the economy was slowing and predicted tougher times for family budgets.

"It's obviously happening out there" he told Fairfax Radio Network.

"The big challenge is, as you know, getting the balance right between not having an
economy which is plagued by high levels of inflation forcing interest rates up over the
long term, while at the same time ensuring enough activity continues to be generated in
the economy.

"We have got our (fiscal) settings as right as we can, but it is going to be tough
- tough in the sense of the impact on people's family budgets."

Mr Rudd refused to say whether Australians should brace themselves for job losses as
the economy continued to slow.

"We have had inflation running at 16-year highs as of when we came into office. That
then flows into interest rates, and we have had 12 of those on the trot going up.

"That then affects the level of activity in the economy, and that in turn affects,
ultimately, employment.

"(But) when it comes to the statistics provided by the ABS (Australian Bureau of Statistics),
it is not appropriate for politicians or prime ministers to speculate on future data."

AAP mj/rl/jl/de

KEYWORD: ECONOMY RUDD 2 CANBERRA (REOPENS)

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